What is the Difference Between SaaS and Managed Services?
TechsPlace | When you’re an IT-managed service provider, it’s essential to stay up to date on the latest trends and technologies to attract and retain more customers and keep them happy with your services. One area where we see tremendous changes in the business world is cloud computing, especially regarding Software as a service (SaaS) versus managed services providers (MSPs). The first step in ensuring you stay ahead of the curve is understanding the differences between Software as a Service (SaaS) and managed services. Here’s what you need to know about each one.
- Software as a Service (SaaS)
- Managed Services Explained
- When Can MSPs Start Offering Managed Cloud Services?
- The Benefits of Offering Cloud Solutions to Customers
- Considerations Before Starting an MSP-Based Cloud Practice
- Is Your Organization Prepared for Cloud Computing Technology and Security Standards
- The Bottom Line on Cloud Computing for MSPs
- The future of MSPs in cloud computing
1. Software as a Service (SaaS)
With cloud computing, companies can purchase and use Software without having to install it on their computers. With SaaS, companies are renting Software rather than buying it. One of the benefits of using a SaaS application is that a company doesn’t have to worry about upgrading their system as they would with a traditional app; updates are handled by whichever provider they choose.
Cloud computing has changed how companies manage their Software. Traditionally, an organization would purchase its Software and install it on-site to run business operations. The issue with that model was that any upgrades to that program needed to be implemented by in-house IT professionals and ensure all their employees had access to a working version of it. So, if the company wanted to upgrade its email client from Outlook Express to Microsoft Outlook, for example, they had to either pay for an upgrade or hire outside contractors who could provide both knowledge and experience. That costs money and takes time–which translates into slower customer response times. So, what does this mean for IT-managed service providers?
Cloud computing takes all of that out of IT providers’ hands. All they must do is sell customers on a cloud-based product, and then they can handle any issues as they arise. Not only does that improve customer satisfaction (no more outages!), but it also makes it easier for IT professionals to plan for potential changes. For instance, if the organisation wants to switch providers at some point in the future, its provider will already know how to make that happen. In addition, if one provider ceases operation altogether, no problem! They need to move over to another.
2. Managed Services Explained
Managed Services is a model in which a service provider assumes responsibility for running their client’s IT infrastructure. By outsourcing your company’s management of its information technology, you can save time and money and gain access to talent that you may not have on your staff. So, what does it mean to outsource your IT department? With Managed Services, you transfer responsibility for running servers, PCs, networks, and more from your internal IT team to an outside provider. This way, companies can focus their limited resources on higher-level tasks such as developing new products or marketing initiatives. In addition, if a server goes down or someone hacks into your system, there’s no need to panic; the outsourced team will handle all problems.
Cloud computing provides a new way of delivering IT services. Cloud computing offers two distinct models for accessing data storage, computing power, application hosting, software solutions, networking, and more: Software as a Service (SaaS) and Platform as a Service (PaaS). With Managed Services, you give up responsibility for those functions to an outside provider.
3. When Can MSPs Start Offering Managed Cloud Services?
Not long ago, small- to medium-sized businesses (SMBs) were wary of cloud computing. As a result, IT managed service providers (MSPs) had few opportunities to offer cloud solutions to their clients. But that’s changing now: SMBs are becoming more comfortable with cloud computing—but they still have questions and concerns about how it will affect their operations. With careful planning and communication, MSPs can win over even their most sceptical customers by offering them a managed cloud solution.
Cloud computing has already transformed several other industries. As these examples show, it’s made processes more efficient for businesses of all sizes and has a similar effect on IT service providers. With cloud offerings like Office 365, solutions such as Shopify and Amazon Web Services (AWS), and Managed Security Service Providers (MSSPs) like Cloud Jumper, you can run your business more effectively than ever. And if you want to offer those solutions to your customers, there’s never been a better time. Get started today!
4. The Benefits of Offering Cloud Solutions to Customers
Cloud computing has been around for a few years, but it’s still an evolving concept. Businesses are learning what works best, especially security and financial management. Cloud providers have come a long way from their fledgling beginnings. However, one thing hasn’t changed: They still present an opportunity for you to offer customers better solutions at more competitive prices than you could if you were hosting all your applications internally. What are some of these benefits? Read on to find out.
In addition to making your operations more profitable, cloud computing offers several benefits you’ll want to consider when deciding whether it’s right for your business. Offering a hosted solution to your customers eliminates many of the risks involved with in-house IT. In other words, it makes running your business more accessible by taking care of all aspects of IT infrastructure management—as well as hardware, software, and operating system updates—for you.
5. Considerations Before Starting an MSP-Based Cloud Practice
If you’re thinking about starting a cloud practice within your MSP, there are several considerations before beginning. These will help you decide whether an MSP-based cloud practice is suitable for your company and if it can deliver desired results. This list covers essential factors, including pricing models, customer acquisition strategies, and staffing needs. An excellent start is by partnering with existing cloud providers with an established market presence. However, customers may be reluctant to sign up with an unknown partner who offers different pricing models than what they’ve been used to; this could damage their business and yours.
6. Is Your Organization Prepared for Cloud Computing Technology and Security Standards
The cloud computing market is predicted to grow faster than many had anticipated. It puts small-to-medium-sized businesses in a precarious position; either they’re adaptable enough to shift with changing technological demands, or they’ll fall behind their competitors as soon as they hit a bump in their operations. Fortunately, Cloud Computing Network Service Providers have already begun adapting so your business can compete at its highest efficiency level. Learn what your options are before it’s too late.
There are a few options available to small-to-medium businesses looking to adopt Cloud Computing Technology:
- You can host your cloud.
- It can use someone else’s.
- It can find a Cloud Computing Network Service Provider that provides hosting.
All three have their advantages. However, the first option will cost your business time and money; even with cloud security standards, you’ll need ongoing maintenance to keep it functional.
7. The Bottom Line on Cloud Computing for MSPs
Cloud computing has already become a significant disruptor in today’s economy. It’s more than just tech jargon; it will shape business operations for decades. So, what does cloud computing mean for MSPs in service delivery, sales and operations? In short: It means significant changes are on their way. Here are some things to keep in mind as cloud computing evolves into its next phase
1) Consumer preferences are driving cloud adoption at an unprecedented rate. From 2011-2013, IDC estimates that total revenue generated by the public IaaS market grew at a staggering 59% compound annual growth rate (CAGR). The future success of an MSP will depend on keeping up with consumer demands while being able to innovate and offer something new. One good example was when Microsoft purchased LinkedIn for $26 billion this year. As LinkedIn runs entirely on Microsoft Azure, this investment supports LinkedIn’s continued expansion and signals Microsoft’s commitment to bringing better cloud solutions to SMBs across the globe.
2) Shifting from owning your stuff to renting from someone else is underway. Consumers are increasingly embracing rental models because they want to be free from the overhead costs and management responsibilities associated with owning physical equipment. These same consumers are demanding that technology companies focus less on selling the hardware and software licenses, impacting how MSPs do business. And if you’re curious about where the industry is headed.
According to PwC, over 30% of IT spending in 2020 will be spent on cloud computing instead of data centres. That percentage may go even higher depending on how fast enterprises can adapt. For example, according to Right Scale, 95% of large enterprises have deployed or planned to deploy private clouds by 2017.
3) The downside of renting rather than owning can manifest in unexpected ways. By outsourcing many aspects of IT infrastructure, an organization loses control over the quality and reliability of those aspects – including vendor lock-in and security issues.
4) Data security will be a crucial issue facing businesses moving forward. Of course, every organization wants to protect its data, but that’s easier said than done. For example, cloud computing allows companies to store a massive amount of data on servers they don’t own. This means they need to take extra precautions to prevent breaches or other cyber-attacks that could compromise proprietary information like trade secrets, research, and development, customer records, personnel files, etc.
5) The IaaS market will continue to expand rapidly. This means MSPs need to decide whether they want to rent infrastructure on a public cloud like Amazon Web Services (AWS), Microsoft Azure, Google Cloud Platform, etc. or go with a private cloud, which offers more security but less flexibility than its public counterpart.
8. The future of MSPs in cloud computing
The rise of cloud computing will be interesting for Managed IT Services Providers San Diego (MSPs). As businesses move away from an on-premises or client/server environment towards an actual cloud deployment, it will force changes in how MSPs operate. There are likely to be fewer calls to troubleshoot problems because software-as-service providers deliver regularly updated Software with high reliability.
With true cloud computing, you will see a drop in IT support demand, which will drive down both pricing and margins for MSPs. This isn’t to say that cloud computing won’t be a gold mine for MSPs, but there are challenges ahead. Businesses will likely have less dependence on their MSP after they go all-in with software-as-service offerings because most of their problems will already be solved.
There will drastically cut down on service calls, with predictable IT costs based on a subscription model. The problem for MSPs will be to find ways to add value to those businesses that choose a software-as-service (SaaS) model.
Fusion Factor Corporation is offering cost-effective Managed IT Services and professional IT Support in San Diego and Carlsbad to a range of industries. We assist our clients with the best IT Support in San Diego and Carlsbad as per their IT needs, at a very reasonable price.